Will fix gas rate really save you money?

By: Energy Complaints | posted in News & Stories, Reviews |
Date: January 18th, 2010

The short answer is NO if you sign up with Just Energy, over 98% will not save money according to statistics on the Citizens Utility Board’s website.

Here’s the actual statistics dating back to 2004-2009 on how much money people lost while paying for their fix gas rate with an energy company called Just Energy, formerly U.S. Energy Savings Corp. People who sign long term contract for fix gas rate lost anywhere from $10 USD to more than $3000 USD with Just Energy 1 -5 years fix rate gas contract. See the full report here.

“Overall, 98 percent of Illinois consumers who have signed up with U.S. Energy Savings (Now operated as Just Energy also operate in Canada as Ontario Energy Savings Corp, Alberta Energy Savings L.P, Energy Savings Group, Universal Energy Group Ltd., Universal Power, National Home Services, Newton Home Comfort) have lost money, with an average loss of $780 to date, CUB concludes.” Read it here.

Check out this article by TheStar.com

Keep in mind Just Energy operate in both the US and Canada. Just Energy also have many other subsidiary and affiliated companies. All Just Energy subsidiary and affiliated companies are rated F by The Better Business Bureau (A+ being the highest rating and F being the lowest rating). Not even one subsidiary company from Just Energy have a C rating:

Just Energy Ontario L.P.(122 complaints) (aka Just Energy (560 complaints))

Ontario Energy Savings Corp(Fine by Ontario Energy Board)
Alberta Energy Savings L.P
Energy Savings Group
Universal Energy Group Ltd. (1 government fine)

Universal Power(268 complaints)
National Home Services (10 complaints)
Newten Home Comfort Inc (aka Newten)

Just Energy (560 complaints)

US Energy Savings Corp ($1 million in restitution)
USESC
Energy Savings Group
Natural Gas Delivery

Also, Direct Energy, Summit Energy, and pretty much any energy companies that hire “independent” energy agents knocking on people’s door need to be avoided. Deal with the “independent” energy agents like you would do to a telemarketing call and your spam emails.

Why are there door to door energy sale agents promising to save you money or discount on your gas and energy bills?

Ok, so now some of you might be wondering if most people don’t save money with their fix gas rate. Then why are there so many so called “independent” energy agents knocking on your door with their sale pitch promising you savings on your gas and utility cost? Well, you are not alone, many sign up with the promise to save money on their gas and energy cost, but end up paying more. There are tens of thousands of complaints for this misleading, deceitful and questionable sale tactics used by the so called “independent” energy agents.

wikipedia.org have about Just Energy, “Complainants allege they (Just Energy) were subject to misleading sales practices, such as unauthorized enrollment in the program offered, and/or misrepresentation of contract length, and/or guarantees of savings, and/or ability to cancel the contract after the initial three day period…” Reand more…

Read all the complaints about the misleading sales and a lawsuit filed by Attorney General of Illinois against U.S. Energy Savings Corp. (Now Just Energy) for $1 million in restitution to hundreds of Illinois consumers in 2009. Read here.

Here is about information I wrote about Just Energy and its affiliated companies misleading sale tactics using their “independent” energy agents. Just Energy complaints. Here is one more article about National Home Services. (another subsidiary by Just Energy)

Also, you might be wondering why are the door to door “independent” energy agents are asking to see your energy bills. They might even say they want to see your energy bill to check if you get some kind of discount, which is a complete lie. Do not show them your bill. These “independent” energy agents will even try to make themselves look like they are affiliate with your current provider or make themselves look like they were sent by the government on a mandatory check up. Don’t believe in that. DO NOT show them your energy bill. They only want to see your energy bill because they want your account number and with your account number they can switch you to another company where you pay higher rates. Don’t show anyone your energy bills, your current energy provider have that information and there is no need to show anyone else your bills.

Best way to deal with these door to door “independent” energy agents, is to shut your door. It is not rude to shut your door on independent” energy agents or any sale agents, it is more rude for them to be knocking on your door uninvited and then try to trick you to believe they’re there to help you and save you money. Now that’s rude and illegal!

It is mind boggling that I can go out and buy a brand new $10 dollars underwear and return for a full refund within 30 days, but you have only 10 days to get out of this energy contract that you may end up paying thousands of dollars throughout the life of your contract.

My first fix gas rate contract

I finally sign my first 5 years fix gas rate contract and NO it is not with Just Energy or its subsidiary and affiliated companies. Even if Just Energy has the lowest and best price for natural gas I would never go with Just Energy. I’m not going to say which company I sign with since you would think I work for that company. After all Just Energy and some of its subsidiary companies tried to trick me and to some of my family members and other people I know, there is no way in hell I would ever go with a company like Just Energy or anyone of its companies. Believe me, if Just Energy disappear tomorrow, I will not miss them at all.

Anyways, here is the reason why I got my first fix gas rate for the next 5 years. With the current economic down turn in 2008-2009. The natural gas rate has been going down. Perhaps it is a good time to get a 5 years fix rate in 2009-2010 when price is low. Remember when you sign up for a fix gas rate, there will be a premium on top of the current rate. Don’t wait for some strangers knocking on your door to sign up with them. Do your own research here. (for people living in Canada)

my-natural-gas-cost

Here is my “Gas Supply Charge” costs from my local utility, Enbridge, in Ontario, Canada. My numbers are for the gas commodity only (i.e. excluding delivery and customer charges.) See the above graph.

Starting from 2006, the natural gas prices have been falling and as you can see on my graph. My last bill in November 2009 is at 12.9 cents per cubic meter – 20 cents gas supply rate, less gas cost adjustment of 7 cents. The total average cost for my 3 years period from 2006 to 2009 is 38.3 cents per cubic meter. So if I can find a company that offers less than 38.3 cents per cubic meter including the premium, I would be saving myself money.

Most of the 5 year fixed rate gas contract I found are around 29 cents per cubic meter plus there is a premium on top of the 29 cents per cubic meter when you compared to the current market rates. Around 1 year ago (2008) I was looking at the 5-years fixed rate and I could not find a company offering less than 39 cents per cubic meter.

If I buy my natural gas now at the low price and the economy is to recover in the next year or two. Perhaps it is a good time to go with fixed rate contract. I would suggest everyone who are looking for a fix rate gas contract to read all the find prints before going for it. Hopeful if you do all the work and research you could be the 2% of the people saving money on your fix gas rate.

Bottom line: Don’t sign anything with some strangers showing up at your house and don’t show them your bills. These “independent” energy sales who show up at your door uninvited are NOT there to help you or to save anyone money. Do your self a flavour and don’t believe in anything they say!

Related posts:

Pros and cons of fixed-rate gas and electricity The fixed-rate gas and electricity are offer by 3rd party gas and electricity providers. These 3rd party gas and electricity providers purchase large amount of...
Direct Energy: will fixed-price gas and electricity save you money? See the analysis on Direct Energy fixed-rate gas and electricity prices at www.citizensutilityboard.org: Direct Energy natural gas and electricity price analysis Have a look...
Variable rate vs. fixed rate natural gas and electricity prices Differences between variable rate and fixed rate You can buy natural gas & electricity for your home or business as variable rate, fixed-rate or even...
Just Energy Ontario L.P. Have you heard of these fixed-rate gas and electricity providers, they are 3rd party gas and electricity providers and in my opinion, they are fraud....
Save energy, reduce gas emission, save money: tankless water heaters Here is a new great way to save money on your power bills. It is a new way to heat water that doesn’t use...
Where to find Summit Energy’s fixed rate gas & electricity prices? Do you want to know Summit Energy fixed rate gas & electricity prices? If you go to their website at www.summittenergy.ca, you won’t find any...
Why people knocking my door asking to see my (Enbridge) bills? Why people going door-to-door asking to see you utility bills, or Enbridge bills, or gas and electricity bills? Do you wonder why there are people...
Where to find Just Energy rates for gas & electricity? Want to know the current rates for Just Energy rate for their gas and electricity prices? Well, if you go to their websites you won’t...
WPS Energy gas and electricity provider See the full fixed-rate gas analysis at www.citizensutilityboard.org WPS Energy natural gas and electricity price analysis Wondering if the fixed-rate gas and electricity with...
Universal Energy Corporation Scam The above video is call The power of high-pressure sales aired on March 20, 2009 on CBC-TV. Universal Energy Corp. is also known as...